Bharat Petroleum Corporation Limited (BPCL) has announced plans to expand its footprint in the renewable energy sector through two major joint ventures. The state-run oil company’s Board of Directors has given the go-ahead for collaborations with Sembcorp Green Hydrogen India Pvt. Ltd. and GPS Renewables Pvt. Ltd., aiming to strengthen its green energy initiatives. The company made the announcement on Thursday, September 12, via an exchange filing, stating that both partnerships are key components of its strategy to achieve net-zero carbon emissions.
The joint venture with Sembcorp Green Hydrogen India will focus on developing, constructing, and operating renewable energy and green hydrogen projects across India. This includes generating and selling renewable energy and green hydrogen.
However, the agreements are subject to regulatory approvals from relevant bodies. “Entering into a joint venture agreement with Sembcorp Green Hydrogen India Pvt. Ltd. (SGHIPL) in the renewable energy and green hydrogen domain is contingent on receiving clearances from NITI Aayog, DIPAM, and other regulators,” BPCL stated in its filing.
In addition, BPCL is partnering with GPS Renewables Pvt. Ltd. to set up compressed biogas (CBG) plants throughout India. The joint venture will involve the construction, operation, and maintenance of these plants, which will produce and sell compressed biogas and related derivatives.
The filing clarified that this agreement is also awaiting necessary approvals. “The joint venture with GPS Renewables for establishing CBG plants is subject to regulatory nods from NITI Aayog, DIPAM, and other authorities,” it noted.
BPCL will hold a 50% stake in both ventures, underscoring its commitment to transitioning towards sustainable energy and meeting its carbon neutrality goals. These moves come as BPCL seeks to diversify its energy portfolio. Despite the company’s long-term green energy plans, its financial performance has faced challenges. In Q1FY25, BPCL reported a significant 73.3% decline in net profit, falling to ₹2,841.55 crore from ₹10,644.30 crore in the same quarter last year.
Meanwhile, Sembcorp has already made strides in green energy. On August 21, Tamil Nadu Chief Minister MK Stalin laid the foundation for Sembcorp’s Green Ammonia plant in Tuticorin, a project with an estimated cost of ₹36,000 crore.
GPS Renewables, on the other hand, recently partnered with Indian Oil Corporation (IOC) in June to promote sustainable energy solutions in the country. These joint ventures signal BPCL’s accelerating push towards renewable energy as part of its long-term strategy to reduce carbon emissions and contribute to India’s growing renewable energy capacity.
